Williams Companies Inc (WMB)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,674,000 | 4,711,000 | 5,017,000 | 5,089,000 | 5,420,000 | 4,804,000 | 4,647,000 | 4,342,000 | 3,621,000 | 3,522,000 | 3,045,000 | 3,130,000 | 3,207,000 | 2,553,000 | 2,755,000 | 2,748,000 | 1,462,000 | 1,514,000 | 1,396,000 | 1,386,000 |
| Long-term debt | US$ in thousands | 25,830,000 | 27,248,000 | 24,884,000 | 26,887,000 | 25,713,000 | 23,895,000 | 24,409,000 | 24,412,000 | 22,554,000 | 21,911,000 | 21,520,000 | 24,301,000 | 27,768,000 | 22,362,000 | 27,643,000 | 26,798,000 | 27,043,000 | 26,000,000 | 22,949,000 | 22,531,000 |
| Total stockholders’ equity | US$ in thousands | 12,436,000 | 12,428,000 | 12,296,000 | 12,449,000 | 12,402,000 | 11,845,000 | 11,679,000 | 11,785,000 | 11,485,000 | 11,319,000 | 11,226,000 | 11,316,000 | 11,423,000 | 11,198,000 | 11,512,000 | 11,702,000 | 11,769,000 | 12,065,000 | 12,212,000 | 12,354,000 |
| Return on total capital | 9.60% | 11.87% | 13.49% | 12.94% | 14.22% | 13.44% | 12.88% | 12.00% | 10.64% | 10.60% | 9.30% | 8.79% | 8.18% | 7.61% | 7.04% | 7.14% | 3.77% | 3.98% | 3.97% | 3.97% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,674,000K ÷ ($25,830,000K + $12,436,000K)
= 9.60%
Williams Companies Inc's return on total capital has shown a fluctuating trend over the period under review. The ratio increased steadily from March 2020 to June 2022, indicating improved efficiency in generating returns from its total capital. There was a notable jump in the return on total capital from March 2023 to December 2023, reaching a peak of 14.22%, reflecting strong performance during this period.
However, the ratio dipped in the subsequent quarters, particularly in September 2024 and December 2024, which may indicate a potential decrease in the company's profitability or capital efficiency during that period. It is important for stakeholders to monitor these fluctuations and assess the factors influencing the company's return on total capital to make informed investment decisions.
Peer comparison
Dec 31, 2024